Shumba Coal Awarded New Coal License in Botswana Coal Tender

September 10, 2014 12:11 PM Eastern Daylight Time

GABORONE, Botswana--(BUSINESS WIRE)--The Board of Directors of Shumba Coal (BSE:SHU) (SEM:SHU) Limited (the
“Company” and/or “Shumba Coal”) is pleased to announce to its
shareholders and the public in general that is has been awarded the
rights to a new prospecting licence for coal exploration rights in
Botswana resulting from the second of its kind open tender, in which
both local and international parties participated. The new Prospecting
Licence No. 308/2014 has been issued by the Ministry of Minerals, Energy
and Water Resources of Botswana (the “Ministry") for coal exploration
rights over an initial period of 3 years. The estimated expenditure to
be incurred by the Company during this period is USD330,000.

The presence of coal in the area was investigated by Majors in the
1970s. During historical exploration programmes, large in-situ reserves
of carbonaceous material were identified in the area. An historical
resource exists in the licence area and initial efforts by the Company
in the first 3 years shall focus on confirming the presence of such
resources.

Shumba Coal is a Botswana Stock Exchange listed Junior Coal Miner with a
focus of becoming a leading producer of sustainable low cost thermal
coal. Our flagship Sechaba Project has approximately 1 billion tonnes of
JORC compliant coal resources and is well positioned in terms of power,
water, road and rail Infrastructure. Sechaba has the potential for
multiple 300MW power station opportunities for domestic and export power
markets; and could also export large tonnages via existing rail.